has anyone heard of a virus that deletes or moves all program files?

I helped a client this week and the first thing i noticed was all of the program files are missing all files saved from those programs had a default icon.
Turns out they had the wscript.Kakworm you can tell by a .kak file in the start up. I got rid of the worm and reinstalled all the programs all was good except Internet explorer. When I click the icon error message ie not in program files. It wont let me remove iesp6 from add/remove and it will not repair it either. I tried to load again and it says one exists already can not install ...